Annex 1
THE GREATER MANCHESTER METROLINK SYSTEM
1. The origins of Metrolink go back to the
mid 1980s when the Authority carried out a review of the role
of the local rail network. At the time, the situation was characterised
by:
a rising deficit and deteriorating
performance of the services;
the prospect of substantial capital
investment in new rolling stock and signalling to keep the services
running in the future;
inability to attract more passengers
to the networkespecially from the carbecause of
the peripheral location of the main stations at the edges of central
Manchester and other conurbation centres.
2. A wide range of options for the future
of the network was considered which included:
reviving plans to build a tunnel
under central Manchester;
conversion to LRT with a tunnel in
central Manchester;
conversion of the lines to LRT operation
with surface links in the city centre;
conversion to either a guided or
an unguided busway;
retaining the existing lines with
further investment but no central area links;
3. A cost benefit analysis of these options
was carried out. This showed that both the options involving tunnelling
could not be justified on cost grounds. There would have been
major increases in congestion costs if the lines were closed.
Interestingly, conversion to busway would have involved significant
costs of both removing the rail track and platforms and in the
vehicle fleet needed to provide a similar passenger capacity to
a rail based system. It would also have needed a much longer closure
period than conversion to Metrolink making it much more difficult
to regain public trasnport patronage in the interim. Hence the
whole life costs of the busway were similar to light rail.
4. Ultimately, the choice narrowed down
to continued investment in the existing rail services to replace
the rolling stock and signalling and converting them to light
rail with a surface crossing of central Manchester. Of these the
light rail option emerged as the better of the two in a rigorous
economic appraisal required by the Department of Transport.
Phase 1
5. The choice of rail lines which could
be converted to light rail was constrained by the necessity to
ensure that they could be physically separated from the rest of
the British Rail network as at the time the Railway Inspectorate
would not allow joint running with conventional trains. Five existing
lines and one abandoned line were identified. These included the
two busiest lines in the conurbation which were those linking
Manchester and Bury and Manchester and Altrincham. These were
selected as the first phase of the light rail network as they
were both in urgent need of capital investment and would generate
the high levels of benefits needed to justify the cost of the
central area section of the line.
6. Parliamentary powers were granted in
1988 to build these lines and Government funding was obtained
in 1989 subject to the involvement of the private sector in operating
the line. As part of the funding process a Design Build Operate
and Maintain (DBOM) contract was agreed with DoT. Under this consortia
were invited to bid for a single contract to design and build
the system and to operate and maintain it for a 15 year period
taking both the risks on operating costs and revenues. The contract
price of the design and build element was reduced in order to
recognise the benefit of the operating concession which was granted.
7. As this was the first venture into operating
railways by the private sector, because of the perceived risks,
the value of this benefit was limited to £5 million. Hence
the funding was in the main by Government and the PTA with a significant
contribution from European Union sources. The resulting funding
package for the £150 million cost was as follows:
|
Passenger Transport Authority | £69 million
|
Section 56 grant | £48 million
|
European Investment Bank | £15 million
|
European Regional Development Fund | £13 million
|
Private sector | £5 million
|
|
Phase 2
8. The first extension to Eccles via Salford Quays is
now being built. The first section will open later this year and
the full line in the Spring of 2000. This will serve the rapidly
developing regeneration area of Salford Quays and the north side
of the Manchester Ship Canal to the town of Eccles. This will
radically improve public transport access to and from Salford
Quays and provide a strong link between this area and the regional
centre.
9. The tendering proces for expanding the system began
in 1996 and led to a new contract award (using PFI principles)
in May 1997. A new consortium (Altram, consisting of Laing, Ansaldo,
Serco) won the contract to operate Phase 1, design and construct
Phase 2 and then operate the full system. This meant that the
previous incumbent operator's contract was terminated.
10. Because of the high patronage levels (and hence profitability
of Phase 1), the reletting of the contract gave rise to the private
sector assembling a funding package of £95 million towards
the total construction costs of £160 million. The remainder
of the funding came from Developer contributions of £12 million,
Capital Challenge Funds of £17 million, the PTA's own cash
resources of £26 million and ERDF grant of £10 million.
|